Samsara (IOT, Financial) experienced a notable decrease in its stock value, dropping by 8.4%. The stock price fell by $3.73, settling at $40.95. This decline marks a significant movement in Samsara's market performance. Investors are closely observing the fluctuations as they assess the company's positioning in the current market landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Samsara Inc (IOT, Financial) is $48.24 with a high estimate of $60.00 and a low estimate of $36.80. The average target implies an upside of 15.84% from the current price of $41.65. More detailed estimate data can be found on the Samsara Inc (IOT) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Samsara Inc's (IOT, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Samsara Inc (IOT, Financial) in one year is $54.83, suggesting a upside of 31.66% from the current price of $41.645. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Samsara Inc (IOT) Summary page.
IOT Key Business Developments
Release Date: June 05, 2025
- Annual Recurring Revenue (ARR): $1.54 billion, growing 31% year over year.
- Revenue: $367 million, growing 31% year over year or 32% adjusted for constant currency.
- Customers with $100,000+ ARR: 2,638, growing 35% year over year.
- Non-GAAP Gross Margin: 79%, a quarterly record.
- Non-GAAP Operating Margin: 14%, compared to 2% in Q1 FY25.
- Adjusted Free Cash Flow Margin: 12%, compared to 7% in Q1 last year.
- Q2 Revenue Guidance: $371 million to $373 million, representing 24% year-over-year growth.
- Full-Year FY26 Revenue Guidance: $1.547 billion to $1.555 billion, representing 24% to 25% year-over-year growth.
- Non-GAAP EPS Guidance for Q2: $0.06 to $0.07.
- Non-GAAP EPS Guidance for Full-Year FY26: $0.39 to $0.41.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Samsara Inc (IOT, Financial) reported a strong Q1 fiscal 2026 with an ARR of $1.54 billion, marking a 31% year-over-year growth.
- The company expanded its customer base significantly, adding 154 customers with more than $100,000 in ARR, a 35% increase year-over-year.
- Samsara's AI-powered safety solutions have shown significant impact, with a 75% reduction in safety events and a 71% reduction in mobile usage for a major retail propane company.
- The company is expanding its ecosystem through strategic OEM partnerships with Hyundai Translead, Stellantis, and Rivian, enhancing its connected operations platform.
- Samsara achieved a record non-GAAP gross margin of 79% in Q1, demonstrating strong operational efficiency and scalability.
Negative Points
- Samsara experienced elongated sales cycles due to macroeconomic uncertainties and tariff impacts, affecting some transactions.
- Despite strong pipeline generation, there is ongoing macro uncertainty that could create timing risks for deal closures.
- The company noted that the current macro environment could delay customer decisions, particularly in asset-intensive industries.
- Samsara's international expansion, while promising, still faces challenges in newer markets like France and Germany.
- The impact of OEM partnerships on gross margins is not yet significant, and benefits are expected to be realized in the medium to long term.
